From the filings
Software purchasing at ZIPS and ZIP Cleaners is controlled at the headquarters level, with Vice President of IT, Operations, and Training Kathleen Razmus identified as a key technology decision-maker. The franchise mandates the proprietary ZIPSsoft system for operations. With 72 total units (52 franchised, 20 company-owned) and an average unit volume of $1,230,997, the addressable market for a vendor is concentrated but presents a clear single-point-of-contact sales motion.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2026)
15% reference
Franchisor behaviours
28 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
data and information from Franchisee’s Computer System and point of sale system as ZIPS deems necessary or desirable and Franchise agrees to fully cooperate with such efforts, including allowing unimpeded, immediate access to Franchisee’s Computer System in the manner, form, and at the times that ZIPS requests.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
No later than the 15th calendar day of each month, Franchisee shall, at Franchisee’s expense, submit to ZIPS, in the form prescribed by ZIPS, a monthly balance sheet and a monthly and year-to-date profit and loss statement (both of which may be unaudited) for the prior calendar month.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
ZIPS, its parent, and its affiliates may be an approved supplier for any materials.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
ZIPS, in its sole discretion, shall be entitled from time to time to change or modify the System, including modifications to the Manuals, the required equipment, the signage, the computer systems, the building and premises of the Franchised Business
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
We did not derive any revenue as a result of franchises’ purchase of the ZIPSsoft Software.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may receive fees, rebates, commissions, royalties, or other consideration from approved suppliers based on sales to franchisees, and we may charge non-approved suppliers reasonable testing and/or inspection fees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
95Item 8
We estimate that the purchase of products that are subject to our standards and specifications represents up to 95% of your overall purchases in establishing the Franchised Business and up to 95% of your overall purchases in operating the Franchised Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
A charge not to exceed the reasonable cost of the inspection and the actual cost of the test shall be paid by Franchisee.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you propose to purchase any materials (that you are not required to purchase from ZIPS, an affiliate of ZIPS or an approved supplier) from a supplier that ZIPS has not previously approved, you must submit to ZIPS a written request for such approval or request the supplier to do so itself.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee shall at all times be compliant with: (a) the Payment Card Industry Data Security Standards (“PCI DSS”), (b) the NACHA ACH Security Framework, (c) Payment Rules (as defined below), (d) state and federal laws and regulations relating to data privacy, data security and security breaches and (e) our security…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee’s compliance with all operational and other aspects of the System, including (but not limited to) an 800 number, secret shopper, loyalty and/or rewards programs or other customer satisfaction and retention…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Conduct inspections of the Franchised Business.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
ZIPS, in its sole discretion, shall be entitled from time to time to change or modify the System, including modifications to the Manuals, the required equipment, the signage, the computer systems, the building and premises of the Franchised Business (including the trade dress, décor and color
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisee shall obtain written acceptance from ZIPS for a site for the Franchised Business no later than the date specified in Appendix A (“Site Acceptance Deadline”).
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee may not establish a presence on, or market using, the Internet in connection with the Franchised Business without ZIPS’ prior written consent;
Is a minimum grand opening advertising spend required?
YesItem 11
During the period beginning 90 days before the scheduled opening of the Franchised Business and continuing for 120 days after the Franchised Business first opens for business, you must conduct new store opening advertising for the Franchised Business that has been pre-approved by us.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Fund or a Regional Co-op, Franchisee’s Local Store Marketing obligation may be reduced so that in no event shall Franchisee’s Total Marketing Obligation be more than 5% of Royalty Net Sales (or such additional amount as required by the Regional Co-op as set forth in Section 9F(4).
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee’s compliance with all operational and other aspects of the System, including (but not limited to) an 800 number, secret shopper, loyalty and/or rewards programs or other customer satisfaction and retention…
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If a Regional Co-op is established in a DMA in which the Franchised Location is located, Franchisee must become a member of such Regional Co-op upon commencement of operation of the Franchised Business if the Regional Co-op is in existence at that time, or no later than 30 days after the date on which the Regional…
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
Franchisee agrees that the Franchised Business will: (a) offer for sale and sell only those services and products approved by ZIPS and not subsequently disapproved; and (b) purchase from manufacturers, distributors, vendors and suppliers (collectively “suppliers”) approved by ZIPS, which may include ZIPS and/or its…
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Franchisee shall purchase or lease approved brands, types or models of fixtures, furnishings, equipment and signs only from suppliers designated or approved by ZIPS, which may include ZIPS and its affiliates.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
“Payment Processors” means all credit card, debit card and/or ACH processors whose services ZIPS may require Franchisee to utilize, as well as payment gateway service providers;
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
For all fees that are payable to us (unless we advise you otherwise), you must participate in our electronic funds transfer program authorizing us to utilize a pre-authorized bank draft system.
Must the franchisee participate in a gift card program?
YesFranchise agreement
Franchisee shall participate in any program established by ZIPS relating to the sale or acceptance of stored value gift cards.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
We require that you identify at least one Store Manager for the Franchised Business, who may be the Operating Principal.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must purchase (or lease) from an approved vendor and maintain a computer system and point of sale system that meets our specifications.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to access and retrieve any data and information from your computer system that we deem appropriate, including electronically polling the daily sales and other data of the Franchised Business.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We reserve the right to require you to pay a training fee as established by us from time to time for such additional training programs.
Who buys here
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
ZIPS and ZIP Cleaners operates 72 locations, with 52 franchised and 20 company-owned units. The brand, headquartered in Maryland, generated an average unit volume of $1,230,997. For a software vendor, the total addressable market is compact, but the centralized purchasing structure means a single conversation at headquarters can influence the entire system. The royalty rate is 6%, and the initial franchise term runs for 10 years. Year-over-year unit growth is not disclosed in the most recent FDD.
The buying center at ZIPS is clearly defined in the 2026 FDD. Kathleen Razmus serves as Vice President of IT, Operations, and Training, making her the most direct point of contact for any technology pitch. CEO Michael Weisel and Director of Operations and Store Development Jaici Kelly are also named executives who likely hold influence over enterprise software decisions. Franchise Development Manager Jerry DeFeo and Chairman Brett Vago round out the leadership team on file. Because the system mandates a proprietary platform, any third-party vendor must demonstrate clear integration capabilities or a compelling replacement value proposition to Razmus and her team.
The technology landscape at ZIPS is defined by a single mandate: ZIPSsoft. This proprietary system is the required operational software across the network. No other third-party point-of-sale, CRM, or operational platforms are named as mandated or recommended in the available FDD data. For vendors selling complementary tools—such as marketing automation, employee scheduling, or advanced analytics—the absence of other named systems represents both a blank slate and a challenge. You will need to articulate how your solution integrates with or enhances a closed, proprietary environment.
The FDD does not provide an extract for Item 8, leaving the formal procurement model undisclosed. It is unknown whether ZIPS designates specific suppliers, maintains an approved vendor list, or allows open purchasing. This gap means a vendor’s first conversation should include discovery around how franchisees acquire non-mandated technology.
Renewal timing offers a strategic window. The initial franchise agreement lasts 10 years, and renewal is for an additional 5-year term. The renewal conditions are stringent: franchisees must sign a new agreement that may contain terms and conditions substantially different from the original, execute a general release, complete retraining, and remodel their location. These requirements create a natural inflection point where operators may be more open to evaluating new software, especially if the franchisor updates its technology mandates during the renewal cycle.
The 2026 Franchise Disclosure Document is the authoritative source for understanding the legal and operational constraints that will shape your sales motion. Review the embedded PDF below to examine the full text of Item 11 (franchisor’s obligations) for any additional technology requirements, Item 8 for any procurement restrictions that may not have been captured in our extract, and Item 17 for the precise renewal language. The document was filed with state franchise regulators and provides the granular detail needed to build a compliance-aware pitch. When you are ready to prioritize franchise brands by technology mandate, decision-maker accessibility, and unit growth, FranCloud can generate a ranked target list tailored to your product.
Questions vendors ask
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
We’ll email you the moment ZIPS and ZIP Cleaners files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
56 operators run 60 mapped locations. 3 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| MD | 26 |
|---|---|
| VA | 12 |
| PA | 9 |
| TX | 6 |
| DE | 1 |
Ownership
single_brand_holdco of ZIPS Cleaners.
Related Personal services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.